Home Sweet Home in Cayman

There are many aspects to securing a property in Grand Cayman and the Sister Islands that differ from other parts of the world, so it is important to be aware of the ins and outs. You can navigate all the major stresses of finding your dream home more easily with the help of a real estate professional who has their finger on the pulse of the Island’s property market.

In Cayman, through the Multi Listing System (MLS) all CIREBA agents can access and show all available inventory, meaning you can relax and let them do the legwork while keeping you informed on available properties. Once they have a better idea of what you want by way of budget, location and size, they can start researching properties and sending you links to review with feedback. Rentals in Cayman move very fast. Places become available and are leased or sold very quickly. Having a real estate agent to help you stay on top of this is invaluable to the process.

Living in the Cayman Islands is very safe for expats and locals alike. As a small country that is big on international business, education, and attracting overseas investment, the local authorities do a good job of keeping things running smoothly. In fact, with one of the lowest violent crime rates of any country in the world, it is probably the most secure country in the Caribbean. For these reasons, Cayman has been growing and continues to attract new residents from all over the world. Young working professionals will find amenities that appeal to an active lifestyle, while there are just as many options for families after a more laidback ‘island-style’ life.

Renting

Real estate agents encourage their clients to rent for no longer than one year (if possible). Owning a home allows you to invest in yourself and pay into your own equity instead of the landlord's. If you’d prefer to go it alone when searching for a rental, ecaytrade.com has rentals listed directly by the landlords, which may streamline the whole process. Realtors also have many up-to-date property rentals listed on cirebarentals.com, where you can search for specific property types and locations. You will usually need to put down a security deposit and the first month’s rent in advance. Some landlords may require tenants to obtain contents insurance at the tenant's expense, and for utilities, estimate approximately CI$100 for water, CI$300-CI$600 for electricity and CI$50-CI$100 for internet.

Caymanian First-Time Buyers

Home ownership is one of the primary methods of building wealth, and as such, it is hugely beneficial to get on the property ladder as soon as you can. Cayman's housing market has faced significant challenges over the years, with a surge of higher-income overseas buyers quickly acquiring the limited properties, driving prices skyward and creating obstacles for the younger generation eager to secure their own property.

In an effort to make homeownership more accessible and attainable for first-time buyers, the Cayman Islands Government have waived stamp duty on properties and land that fall under a certain threshold and announced new pension withdrawal options. As of December 2023, Caymanians and status holders with private pensions can withdraw up to CI$50,000 to buy an existing home, build a new home, or buy land. Those that have an existing property can withdraw up to CI$100,000 from their private pension, as long as it will completely pay off their outstanding mortgage.

Repayment of withdrawn funds is required, with an additional 3% monthly contribution towards the pension until retirement or full repayment. Visit the Cayman Islands Government website for more information on the National Pensions (Amendment) Act, 2023. Unfortunately, there are increasingly few developed properties on the market that are selling for under CI$550,000, and if the property is over CI$650,000, you get no stamp duty break at all! This, combined with a down payment of at least 10%, lawyer charges, strata fees and home insurance costs, is what leads many families to believe homeownership in Cayman will remain a distant dream for the country’s future generations.

What to Buy

If you are lucky enough to be able to buy a home, always bear in mind that you are much better off buying a property that offers flexibility and is affordable. ‘Right-sizing’, which means moving into a home that suits your current needs, is key. Do not overstretch yourself, as high-end homes do not sell every day in Cayman, and they can sit on the market for a long time. Opting to buy a property within your means can make selling in the future much easier.

If you are going to use real estate for points in your Cayman PR application one day, be sure to speak to an immigration specialist to get all the facts. There are several levels of real estate that are required for different categories of residency.

When buying a home, prioritise affordability and long-term suitability. Ensure the property meets your current and future needs. Remember to factor in the additional costs like surveys, valuations, stamp duty, mortgages, legal fees, and potential home repairs. Buying within your means facilitates future selling and financial stability.

Financing

Always shop around when looking for a mortgage. Research your options with various banks as there are a myriad of financing options available which constantly change. The usual term for a mortgage is 20 years, although some banks will offer as much as 35 years. Cayman's retail banks usually do not offer mortgages to buyers over 65 years of age, so start early!

To increase your chances of obtaining financing from a bank, you should have a good sense of your future income, have been working in Cayman for a minimum of six months and be in a solid financial position. A general rule of thumb is that you will need between 10% and 35% of the negotiated sum to secure a mortgage, plus money for bank fees, stamp duty, legal fees, an appraisal fee, and government fees. Don't forget, you will also need to get life insurance to cover the balance of your mortgage, as banks require this.

Costs to Consider When Renting a Property

Deposit: You will usually need to put down a security deposit and the first month’s rent in advance. For utilities, estimate approximately CI$100 for water, CI$300-CI$600 for electricity and CI$100 for telephone if setting up direct-debit standing orders.

Maintenance Costs: Make sure the landlord will take care of maintenance costs associated with garden and pool care, garbage collection, pest control and servicing of general systems such as air conditioning.

Insurance: Personal property insurance is the responsibility of the tenant.

Furnishings: A lot of units come 'fully furnished' (linens, kitchenware and appliances are supplied, as well as furniture). Prior to signing your lease ask for an inventory showing everything that comes with the unit. You will have to be prepared to supplement anything missing.

Pets: Some complexes do accept pets but will ask for an additional non-refundable security deposit, which can be as much as CI$500 per pet.

Smokers: Many landlords will not rent to smokers.

No Sharers: Sometimes landlords will require apartments not be shared, i.e. only one family per unit.

Realtors in Cayman